>> get the irs out of obamacare. that is the demand today. the scandal bites the president's signature legislation. good morning, everyone. three developments. representative diane black says, no to the irs policing obamacare and she will join us today. representative dean heller says no to the irs hiring 1,900 new agents for obamacare. politico says the irs wanted to know everything and i mean everything about tea party people and others. the irs scandal now threatens the obama agenda. and the government seizure of ap reporters phone records has finally turned the establishment media. maybe that's why stocks keep going up, scandal equals gridlock, equals rally? "varney & company" is about to begin.

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>> all right. everybody, this is the financial headline of the day. the deficit is getting smaller. a lot smaller. the congressional budget office says it will be $400 million less than the trillion dollars deficit last year. it's down because of higher taxes. a 60 billion check to the government from fannie and freddie. there's a down side for those of us who want the government to get its finances in order, this takes the wind out of the sails of the spending, cutting movement. maybe the deficit news helped stocks, another record close for the dow, 19th this year and same story for the s&p 500, the 14th he record there this year. we're looking at a flat to slightly lower opening today, but that happened yesterday and we still went up 120 by the close. stay tuned. and suddenly, it seems that president obama's second term

agenda is unravelling. and the mainstream media have turned on the administration. big government seriously questioned, my, have times have changed. in just ten days. here is the the all-government, all the time president speaking the at ohio state may the 5th. >> unfortunately, you've grown up hearing voices that incessantly worn the government is some separate sinister entity at the root of our problems. you should reject these voices because let what suggest as brave, creative unique experiment in self-rule is somehow just a sham with which we can't be trusted. >> we went out and asked people a simple question: how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s.

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so you can understand every angle of your cash flow- last week, this month, and even next year. for seeing your business's cash flow like never before, introducing cash flow insight powered by pnc cfo. a suite of online tools that lets you turn insight into action. >> we're going to be down 20, 30 points when the opening bell rings, something called the empire state manufacturing indicator. it was down, more than expected, and that's apparently a negative and that sent the futures market down a lit more so we're looking at maybe 25 points lower. as for producer prices, down .7%. if you take out food and energy, up .1% and i don't think those numbers are going to have that big an impact on a market like this. let's move on, scott shellady is with us.

scott, yesterday, one of your colleagues, tres knippa, there's gridlock, were you there. >> those scandals that keep the gridlock keep the politicians from sounding off and saying something wrong about the economy and while they're quiet going on in their own back yard. this market marches higher. in the month of may it's quiet and we'll rally on stuff, never sell a quiet market. >> a drop in the size of the deficit, this year over last year, is positive for stocks, presume. isn't it. >> that lit the fire yesterday and he we saw some come out why that's the case and now, it's probably going to be going to be the case for the next four or five months and that's what the markets needs and keeping the new highs in the face of bad economic news. >> to sum it up. it feels like the market wants

to go up no matter what? >> well, i mean, we're going to have to make that at some point in time, but, yes, we're making this march higher due to the recent news that we've had, it's not bad. >> don't look so sad, scott. making money. >> i want it to be good, too, it seems to be more forceful. [bell ringing] >> i'm with you, scott shellady. the opening bell has rung and where are we going? slightly lower in the very early going. okay? we're looking for maybe 25, 30 points down when we get moving here, but look, 15-2 on the dow. and tesla shares, got to talk about them. they broke above 80 yesterday and then they went above 90, but lost their steam. why? because the chief ceo, he tweeted that a big announcement about the company's super charger technology will be postponed just for a week. and nicole, we're at 82 now. >> and super charger technology is just one of their many things, and the truth is, this stock has been a darling.

this month alone the stock is up 54%. and as you noted, it's broken through records. and they continue to get credit, green car credits, and that's good news for them. and that will really tie in about 11% of tesla's expected revenue for 2013. so, so far so good for tesla. >> thanks very much, nicole. i've got an important and breaking story here. reuters is reporting that the swiss national bank is investigating where the bloomberg journalist accessed its usage data. and this is the story about the wall or supposed wall between the reporters from bloomberg and those terminals which have all of that data. you can look at it the other way around. did anybody on the data side, the traders, did they make any money on this lack of a wall between the two? it's very much in the news, and you'll watch for developments on this one. all right, we dealt with tesla. now i want to deal with another stock that's gone straight up.

google, look at that. 896 on google, closing in on maybe 900 and that stock, the huge company that it is, is up 25% this year and 45% just since last may and they're coming out with a streaming music service just like spotify. and record profits at deere, whoufr the compa however gave a cautious outlook. and full disclosure, i own a john deere tractor, just a small one. another ame, apple, it's dropped from $700 last september. we have the guy now who says it's going to go much lower still. try $240 a share and that's where he says it's going. and if david trainer, joining us by phone. all right, david, justify, $240 from 440 now. >> sure, you know, it's really just about the economics and my goal is to further the knowledge of investors and the idea that

apple somehow a value stock makes no sense to me. the current stock price implies the company is going to maintain a return on investor capital of 124%, and just to be clear, return on capital simply the level of cash flow divided by the amount of capital in the business. >> you're not one of those guys who was, you know, six months ago saying it was going to 800, 900 or 1,000, you're not on that team, are you? >> i was not. in fact, we moved from positive to negative about seven months ago on the stock, as we saw, the company's return on investor capital from 2011 which was enormous, 340% then dropped to 270% for 2012. and a big decline which i believe to be the beginning of a trend. >> okay, we hear you, david, thank you for joining us, 240 is your prediction for apple. it's 440 as of right now. by the way, just moments ago, google touched an all-time high

of 899.32. we'll stay with that one. watch it on the bottom of your screen there, it may hit 900, maybe, i don't know, and real close, real close, all right. just watch it it, it's right there. and i'm going to stay on the markets and bring in keith fitz-gerald in portland, oregon. keith, here is one of the themes of the day. scandal in washington equals gridlock in washington, ehe qualehe-- equals stock market rally. does that work for you. >> historically, we look at iran c contra, as long as we don't have the systemic risk, and works, keeping congress out of the way wall street will run. stuart: you can never tell what's going to happen. it's completely unpredicted. could be a famine. quake, it it could be a natural disaster. any of those things, you cannot

predict those kind of things, but basically you're saying if there'' gridlock there, that's hu usually good news for the market. and 901, it's like a horse race, keith. the deficit 400 billion dollars less this year compared to last year. do you see that as a big positive? >> you know, in a very short-term that's a huge positive we're getting things under control. since world war ii, average debt to gdp, 38%, 78% where the budget office says we will be for the next decade, we've got an awful long way to go and a lot of work in my opinion. stuart: you're not quite there, not quite on board with buy this market 'cause it's going up. you're not quite there, are you? >> oh, no, no, no, no, i think there's plenty of opportunity out there in this market, especially if congress has got its hands tied because that means ceo's can actually take the initiative and gain confidence and do what they do best, which is earn new

business. if congress is in the way, they worry about regulation and obamacare and half a dozen other items and keep their capital close to the vest. i like this. stuart: okay. but these scandals are beginning to have a real impact on the president's agenda. you've got benghazi, the irs, the department of justice and ap reporters and he's going to be invested up and down and side ways and that's going to take his time and i think reduce his political capital, and so, i think we agree here, this is gridlock for his agenda. okay. and so do you see the dow at 16,000? i've got to ask you. >> that's a tough question. i do see it getting there and you know, if we look at google, for example, that's a great indicator of what all of this means, that society is moving towards information, information is turning into profits and somehow we're going to monetize this and google, you can buy a hundred shares or a house at this point. stuart: do you own google by the way? have to ask you. >> full disclosure, i do not own google. stuart: where you been?

>> you know, some stocks you can't date stuart and i don't get that one. stuart: what, some stocks you can't date, did you say that. >> some stocks you can't date. i don't get that stock. i never have, i never will. stuart: me, too. thank you very much indeed, keith fitz-gerald. back to nicole, i know google is on the screen, and where are we. nicole: i'll tell you 904.57 i checked it a moment ago and this is-- one of the analysts was calling for 996. so, just short of the $1,000 mark at morgan stanley, 996 from 932, overweight rating so they're basically calling for a ttousand bucks on google. can i tell you about macy's? >> yeah, i was interested in that. it's an old-line retailer which normally doesn't do much, but it's at a new high? >> oh, yeah, it's at a new high reminiscent of 2007 levels. macy's of course, don't forget, bloomingdale's is under the

macy's umbrella, and one of my favorite places, full disclosure. since you disclosed your john deere tractor, i shop at bloomingdale's. david higher, 25% to the upside, announcing 1.5 billion dollar increases of share buy-back and all this have good news, stuart and putting the merchandise towards local tastes and that's something they've done differently. and they're teaching the staff to be more engaging with the customers and the merchandise, here, buy u you go to the malls and there are a couple of anchor stores, one may be macy's and one may be j.c. penney's, if j.c. penney is turning people then-- i'm banned from malls, and-- let's go to the 7 early movers. start with moody's, it's cut

merck's credit ratings by share buyback by merck. and we just talked to an analyst who said that apple shares are going to go down to 240. they're down today. down almost $7 at 436. hsbc is going to cut, what, 14,000 jobs and trying to save 3 billion dollars. the market likes it, up just a fraction, that's it. boeing is going to resume deliveries of 787 dreamliners and they're going to fix the batteries and apparently they have on all dreamliner jets and that fix will be completed by the end of may and maybe boeing is closing in on $100 a share and it's at 96 now. profit falls at adulent and cut jobs, market likes it. up a buck. safeway, it's a supermarket chain, raising the dividend 20 cents had a share and the market thinks nothing of that. 25 bucks, down a fraction. and u.s. airlines make 3 1/2. that's all airlines, okay?

not just u.s. air all of them collectively. 3 1/2 billion dollars from those fees for checked luggage and other fees which they charge you for everything. and delta, that's going up because of those fee earnings, 18 on delta right now. and all right, we've got the dow jones average down 24 points, pretty much in check where we thought it was going. down 24. time is money, 30 seconds, here is what else we've got for you, the failure of socialism in france. they're now in recession, and that's not stopping them from taxing smart phones and tablets. wait until you hear why. we also have one of the researchers who's printing 3-d replicas of patient's hearts to better diagnose and treat them. and this is the wave of the future. big money in it. we're all over this 3-d revolution and we've been talking a lot about tesla and its success recently, why does one state want to ban sales of tesla in that state?

it's a pro business state. why is it doing this? but it is. and elsewhere, we've got a bureaucratic mess, politically corrupt, just a few of the terms being used and describing the irs and obamacare. the one congresswoman who wants the irs out of obamacare. first, 89 people charged with medicare fraud in eight cities. the cost to the government? $223 million dollars, fake billings, doctors, nurses, all of them accused of being involved in this fraud. frequent "varney & company" guest, senator and dr. tom coburn has been warning about this for year and the fraud goes on. >> medicare has at least $80 billion of fraud a year, a full 20% of every dollar spent on medicare goes to fraud and medica medicaid-- (announcer) scottrade knows our clients trade and invest their own way.

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>> check the big board, we're only 30 points down after a whopping rally yesterday that took us over 15,200 that's not much of a retreat now, is it? do you want the irs involved in your health care? well, like it or not, that is what's going to happen with the implementation of obamacare later this year. and our next guest is trying mightily to change that. and here is congresswoman diane black from tennessee. thank you for joining us this morning. >> you're very welcome, thank you for having me. stuart: i know that you share the feelings of many of our viewers that you are outraged at the idea of the irs having access to our personal health details, got that. but what can you do to stop it? can you actually get the irs out of obamacare? >> the first thing i'd he like to do is repeal this awful bill. we obviously know there are a lot of things that are going to happen that are not good for our health care system in this bill, but aside from that, there is a provision in obamacare that says the irs is going to have

unprecedented amounts of our personal information. look, they can't take care of just getting 501(c)(3)'s. stuart: can you stop it? congresswoman, i want to know, can you stop that? in the house, i know the house will vote to repeal obamacare in its entirety, i don't think that will go anywhere in the senate and the president would veto if it got through. what can you do, get irs out of obamacare? >> it's a very good question and i think that the scene right here in washington is not only are we republicans upset about are on the other side of the aisle that are saying, hey, look, we don't want this to happen to us either. so, it perhaps is a good time for us to talk about what can we do to hold accountability in this organization that is going to have to unprecedented amount of information? i'm working on a bill right now to say that if this, this and this is not done by the irs, then they cannot get this information and they cannot handle this personal information

that would be given to them as a result of the obamacare. >> as things stand, next year when i make out my tax return, i believe it, next year on that return, i've got to tell the irs where i've got my health insurance, what i'm paying for it, and a lot of other details about my health insurance. that's the way things will be unless you can-- unless the congress can change it, am i right? >> that's correct. and that is what i'm working on right now is to make sure that even if that information is still going to go to the irs, that we're going to have some confidence that that information is going to be held confidential and people who do anything outside of confidential are going to be held accountable for that. >> i didn't tell our audience, but i believe you were an e.r. nurse, is that correct? >> i am a former e.r. nurse, yes, i am. stuart: so you know what you're talking about and we're delighted to speak to you. would you come back, we want you to come on back and give us a progress report on what you're trying to do to get the irs out of obamacare, come on back,

please. >> we'll do so. we're only at the he tip of the iceberg on this and we have a lot more work to do. thanks for having me. stuart: we appreciate it. and we're a minute shy, but getting gold again. 1414, now, that's 10 bucks down and we're moving a bit lower here. now, i am a tv news veteran. i've been in the business for 40 years, yet, time and again i find myself stunned. a story that you just can't make up. my take on president obama's half brother. that's a stunner and it's next. ♪ his welfare is my concern ♪ ♪ no burden is he ♪

>> these tornados are forming so fast-- oh, oh, my gosh, lisa, are you ready for that camera. the hollywood sign is gone. >> is anyone hurt? >> could it be the end of hollywood as we know it if the

koch brothers buy the l.a. times? unions protesting the possible purchase. they're outraged. that's coming up in our next hour and plus, the president's second term agenda unravelling, scandal after scandal, the markets love it and we are on it. even after 40 years in the news business you can sometimes be just plain stunned. so it was this morning. here is my take on roy obama the president's half brother. it took one month for the foundation which he runs to receive tax exempt status. and that status was made retroactive so that the years when roy was soliciting money, probably illegally, would be covered. so, he and the president would be immune. don't worry, roy, the irs has got your back. my thanks to the daily caller

for this story. what a contrast with tea party people, democrats branding them racists and they were granted status, information was leaked to the president obama supporters. how could this happen? and hold on, i will answer that question, but first, a little more about roy. reportedly he has 12 wives back in kenya, he was raising money to build an islamic educational facility and a house for an imam. and the name of the charity he runs, the barack h obama foundation. he used the president's name to get an extraordinarily prompt tax break and an unheard of retroactive ruling. po, what is going on here? flagrant abuse of america's fundamental principles. the dragging down of america to third world behavior, and frankly, gross interference with a presidential election. and that is why, despite 40 years in the news business, i

can still be stunned by what we've come down to.

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fun. what would hollywood do if the conservative koch brothers really did take a leftist l.a. times. coverage of the 3d revolution continues today, the printed 3d heart replica. theme of the day, scandal is gridlock and stock market rally. ♪ the dow jones industrial average this wednesday morning down a little bit, and that triple digit rally was yesterday, started flat, moved straight up, charles payne is with the company. the theme of the day, scandal in washington, gridlock in d.c. and that is why the market is rallying. is this affecting? charles: and somehow maybe the anti business agenda being put

on the back burner. stuart: is a factor. we can talk been printing money all day long but gridlock is good. charles: no more rules and regulations, no more browbeating, wall street loves it. stuart: the obamacare -- i don't know. john dear, they are weighed down this morning. you want to tell me why? charles: guidance. this is the best quarter they ever have on sales and earnings and they said it was mostly the global economy but i want to talk about the initial reaction was down $10, down 3 right now. we have this robust stock market, this bull market that looks unstoppable but beneath the surface is a lot of anxiety. even bulls looking for a pull back so that 10% pull back, the initial knee-jerk reaction, people watching the show up a lot in a lot of stocks, what kind of pull back can you handle? cash in a few years. stuart: sent down on a john

deere company. charles: $10. stuart: google at 907, that is the current quote, 907-908, straight up. nicole: morgan stanley 996 so we will see if it gets up to their. what a run. stuart: they said we are not going to split the stock but when you get up to the 900s i have to wonder, 908 is the new high. nicole: first thing i thought of was berkshire hathaway. there are these stocks that are not planning any time soon. stuart: tell me about netflix. up again? >> another major winner. it is up 4%, all those worries about netflix expanding what they offered to subscribers, abroad, you see here, 242

trading as high as 284-83, you today up 162%. stuart: not sure i like that but they are the ones who say the end of tv as we know it. 40 years in this business. thank you very much. now this. the obama second term honeymoon, i will tell you is unofficially over. scandals at the irs, the associated press and benghazi threatening to derail the president's second term. a democrat strategist is here. is he a lame-duck? >> if he doesn't win the scandals of fast yes. it is going to prevent him getting anything done. stuart: i wasn't expecting to hear that. >> you should have read your notes. stuart: are you serious? >> if he doesn't clean this up yes. all anybody is focused on inside the west wing and outside the west wing is scandal after scandal after scandal, all the

president's men for lack of putter you would not prefer my using, all their focus on is scandals and damage control how can you get anything done? stuart: i don't see how he and clean things up because he is going to be facing investigation after investigation. there will be hearings up and down d.c.. that takes time. >> we saw this in the second clinton term with the impeachment process happening oxygen out of anything in washington and clinton left office with the highest approval ratings of a modern president. stuart: the stock market went straight up. charles: hours that day? >> today, you might argue the republican -- i would say the reason i say that is the republicans need to be careful and i would give him this advice although they will not take it. too much scandal mongering and a lot of these issues need to be looked at, i am not suggesting

what would happen with the irs is something not to be looked at, it does, but if all congress is going to do is get mired in investigation after investigation they may lose as they did in 98 with bill clinton. stuart: don't start talking impeachment but some people may believe these are impeachable offenses. don't use that word. u-turn far more people off than you will turn on. mets be specific. obamacare. just as it is going to be implemented all these investigations of the irs which will have unprecedented power over obamacare. is there a chance we will roll back obamacare or delay its implementation? >> wishful thinking. is not going to happe what happened with the irs was limited. we will find out but was limited to very specific aspects of what the irs adds responsibilities are. the irs can do anything, none of us should file tax returns, they

shouldn't audit anybody, shouldn't have the irs at all, they still have to function and perform their basic duties. stuart: represented to dean heller, republican nevada has legislation which says you, the irs may not higher 1,954 new irs agents to police obamacare. dianne black, republican tennessee on a program of moment ago is going to introduce legislation that says the irs is not going to be the policing agent for obamacare. that is legislation. odds are it will pass the house. that might pass the senate. >> i don't think it will pass the senate. it is not going to pass the senate and not gee signed into law by the president. he staked his legacy of obamacare of it won't the rail that legacy. stuart: face the electorate from uncertain states in 2014. >> the eligibility voted on obamacare and won moore. stuart: you could amend it and

have legislation. >> we have voting on obamacare in 2012 and did not resolved and he got reelected. charles: bringing up obamacare as if we can have buyer's remorse, as if people can't find out things in this thing they didn't think were in it. anything can be resolved but i want to ask about the idea of sweeping this under the rug. what the irs did with a wink and a nod from the white house is deemed a certain group of people they would give a certain group of people a hard time. imagine if it was a race or some other group. i don't see how easily that under the rug. >> i agree. you don't and you look into it. here is the problem for the irs after the -- what happened with richard nixon 40 years ago, after he heard the irs, bitter enemies, put into place to prevent the president having much dealing directly with the irs. you're saying the president -- charles: the president -- the tea party is racist, should have been targeted because they are

racist, the naacp, the irs not necessarily acting as a direct order but in compliance with the will of the president. we know the president wants us to do this and doing it on his behalf. >> you're making allegations with no evidence. how can you say there's no evidence whatsoever? i have no idea. charles: why didn't they pick a girl scout? >> initially a bush appointee -- it is not irrelevant. you are saying it is not. i am not saying the bush administration is responsible. stuart: last one. how do you explain the president's half brother getting a tax exemption one month after he applied for it for his foundation. >> i have no idea. stuart: retroactive. >> i didn't know the president had a half-brother. stuart: 12 lives in kenya reportedly. the daily caller reports is foundation named the barack obama foundation in arlington,

va. got tax-exempt status one month -- >> i have no idea. i have no idea. stuart: how do you sweep that under the rug? >> i am suspected of the daily, because of e-mail allegations against members that were proven to be false. before we go into the daily caller let's look at the facts. i have no idea about that case i can't defend it or anything that happens with the irs. i completely agree with you. it is a disgrace and somebody should get punished for it but i don't want to say that this white house directed anybody to do until i see evidence. stuart: hold up the president's agenda? >> it won't. stuart: thanks for coming on. difficult time for you. >> obamacare will be implemented no matter how many times you hope it is not. stuart: thank you. breaking news and it is on obamacare. the obama administration announced a $1 billion initiative to launch health care innovation awards basically subsidies to health companies.

that would be $1 billion. nicole petallides, toyota shares, we are using this as the proxy for japan. the japanese market is up 70% in six months. toyota reached a 125. where is it now? nicole: and new high for toyota is reaching almost 126 at the moment. new 52 week high not all-time high but not too far off of the all-time high, the weakened yen helped toyota with their sales across the globe and they had seller numbers and they're doing very well today up 1-1/4%. stuart: three bills headed for this california state senate that call for a moratorium on fracking, extraction of natural gas and oil from deep under the ground. the bills would stop fracking until its health effects and effect on the environment are, quote, thoroughly studied. bill some 8 from the center for biological diversity joins us

now. i am sure you support this moratorium. i know you don't want fracking. i got that but you got to explain to our viewers how does this interfere with or affect biological diversity? >> what you are seeing in california and throughout the country is literally an orgy of natural gas and oil fracking or fracturing of the rocks beneath the ground service, devastating plants and animals literally throughout the entire country. every nook and cranny of this country is open for fracking and in california the problem is particularly acute. stuart: you say fracking the serbs wildlife and therefore don't do it. >> it uses a lot of water, gets into water supplies. stuart: we are not going to get into that. you stop fracking and they haven't even started it, but if you do stop the u.s. stop in the state which is essentially

bankrupt going for the only resource which it has which would bring it tens if not hundreds of billions of dollars of revenue. they could resume health services for children, they could resume having one of the best educational systems in the world but because it disturbs animals you will stop it. do you know what you are doing? >> i don't look at it that way. there's a much better way to look at the future of california, not to be fracking underneath earthquake faults. there are so many uncertainties with the california proposal that would be foolish to go ahead with the that this point. public sentiment in california is clearly on our side. we need to look at what these impacts are and if there is as a menace as you claim will go forward. stuart: fracking has been used for decades in parts of this country. decades. >> here is where you don't have it right. this fracking today is different from fracking that occurred last generation. we are talking drills that are much deeper and more horizontal

under the ground. all the skills we had over the last month alone, tens of spills with billions of gallons of oil or other pollutants coming out of these drills. stuart: only 30 seconds left. you don't want natural gas, don't want oil, don't want nuclear, you want america to be solely what? hydro power? >> we are fracking for some much gas right now we want to export it. you can stomach we don't have enough gas. >> don't want fossil fuels or any of it. i don't want -- >> ever seen -- stuart: i don't want the hidden agenda. i want to know what you really want to do. we >> we want to stop fracking. stuart: stop the use of oil? >> did i say stop the use of will? we want to stop fracking. stuart: fracking brings a lot of the ground. >> it is not the only way we get gas and oil.

there are other ways. edlund you opposed also fuels period? >> absolutely should be phasing fossil fuels out. won't end tomorrow but absolutely we should be phasing them out. stuart: i didn't quite get your response. come on back at some point because i really want to know what your agenda is. i don't think you want any fossil fuels at all. >> you overstate it. stuart: okay. thanks for joining us. good to see you back again. >> please have me back. stuart: the department of justice versus the associated press outrage in the press, the mainstream media turning on the obama administration. did you see that? yesterday, great stuff. german who spent time in jail to protect her thoughts, she is next. we went out and asked people a simpleuestion:

how old is the olst person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. anthat's a great thing. but even though we're living longer, one thing that hasn't changed much is the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪ [ whirring ] [ dog barks ] i want to treat mo dogs. ♪ our business needs more cases. [ male announcer ] where do you want to take your siness? i need help selling art. [ male announcer ] from broadband to web hosting to mobile apps, small business solutions from at&t have the security you need to get you there. call us. we can show you how at&t solutions

can help you do what you do... even better. ♪ stuart: let's start with the name you know, john dear, posting record profit, are cautious outlook, stock is down 4%, big drop for a big company like that. google record high set to announce a new subscription music service that will rival pandora. and a figure with a three figure labels up 97.

test plug above 80 yesterday and 90, for them they tweeted the supercharger technology will be pushed back a week, as lead down 83 on that. boxer floyd may whether top sports illustrated list of highest earning athletes in america. the second year in a row, estimated he will make $90 million in 2013. stay right there. judith miller is next. this is america.

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stuart: let's get to that story that really turned the media away from president obama and made them not enemies but critical of president obama. that is the story about the justice department getting a hold of the phone records of numerous associated press journalists over a two month period. here is judith miller knows a thing or two about records hated by the government. big picture, am i right in saying that yesterday at a press by jay carney was a real turning point because the media turned on the president who they previously supported. >> it is just an extraordinary moment to say the press which is supposed to be a watchdog for the white house finally rise up and ask some tough questions. stuart: do you think it was justified? >> long overdue. this is an administration that n s systematically withheld

om people, one of the most secretive admini ts is an administration that is used the espionage act six times to prosecute whistle-blowers, more times than ever been enacted since it was enacted in 1917. this has been secretive administration. stuart: what was your own experience? you refuse to reveal a source, you went to prison. >> for 85 days. stuart: take me through it. >> investigative journalism cannot be done unless people trust you to keep their identities secret when they come to you with information the public needs to know and when you could get a waiver from the sources involved to let me testify, i felt i just had to go to jail. stuart: this administration went around with you were doing, refusing to reveal these sources, and checks the phone

records secretly of numerous journalists so they didn't have to say -- not going to reveal my source is. the administration went straight at it and got the. >> highly unusual because in a separate case, they also tried to get my records. same prosecutors tried to get my telephone records and the records of the machine then, a colleague of mine and they succeeded but they did it first by going to the times and say we went your telephone records. what makes this story so different is the justice department just acted, just seized them and all of these records incoming and outgoing calls, cellphone, office, mobil, overreach. stuart: what is it like professionally, you are a professional journalist, what was it like professionally, and just as important, what does it like personally? >> the personal sense is extraordinary, like being robbed, the government has every

number of everyone you ever called for any reason and don't know what they're going to do with it so would is a terrible feeling. stuart: was it that extensive? >> the amazing thing is and this is the lesson to the government. and no charges brought against the person who told me that information, his identity or her identity is protected and all of that the government did not succeed in getting the information it wanted to. charles: did they apologize to you? >> i did not get an apology. charles: stripping you of your humanity? >> this isicomped w ose oin mt untriesut for eri thisas of jo de. strt: youhinkhere llo cko wningve pridenobamnduprtin him? >> i t ialmost ineble. chars: aempory break wle deawith the ap scanda a temporary blip l

people wake up and look at what the administration has been doing with respect to controlling its message and information. stuart: i thought there was hope but apparently not. we appreciate it. two stories from france. socialism clearly failed, france in a recession. they plan to tax cellphones. why? to pay for the arts. our president french refugee response next. what is it that makes a husqvarna? it's not all the brilliant engineering, no. it's this that makes a husqvarna! ...amelia... neil and buzz: for teaching us that you can't create the future...

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stuart: the state of michigan is released draft for cash. the city of flint sold this plastic santa claus which used to sit on top of city hall for $1,300. this santa was sold on line along with other unneeded items the city owns, charles going to make some money with what? charles: zale's. beneath where you shop. be that as it made this is a turnaround play. i did this last year with treaty ashley and i was early. the company, stock closes above 6, really going to take off.

everything moving in the right direction from net losses of the last couple years to gains at the end of the year, the cash flow looking much better, almost every aspect every way you measure stock looking good, the bond was picked, i am not sure why but gives incentive urgency that maybe we need to be they're looking for 766, this used to be a $30 stock. stuart: i would take that shot. headline of the morning i walked into, france is in recession, interesting news, let's bring in the market center at george mason university, born, raised and educated in france. good to have you back again. france is in recession. i want to know why. i have a suspicion not cutting spending, raising taxes.

am i right? >> you are exactly right. the only policy implemented in france is what i called trident austerity, there has been no public austerity, not cut spending. stuart: over here we look at europe. and all this cutting of spending, just dreadful. tax increases are going -- >> i am back to hear -- i will be wealthy if i get a penny each time austerity and people and prized spending cuts and looked at the data, spending data, most countries have increased spending slower increase spending over the period, raised taxes so much whether it is the value-added tax, capital tax, income tax rates will almost

anything that moves like this like the device tablet, cellphone taxes, everything. stuart: i just wanted to get to that because as i understand it there is a new tax on cellphones and tablets and revenues going to be used to support the arts. >> france has a minister of culture and they have a right to culture which i am sure is quite rare and there's already a tax on tv and radio to support culture and they want to impose it on all devices weather is weak, and nintendo, cellphones, tablets, everything. stuart: i am and englishmen and consider myself a refugee and very happy in america. you are basically french but you are a refugee. >> i wish things were better here but i am very happy and 50%

of french people between the age of 18, and 34 would like to do with you and i did years ago. years ago and exit. it's telling you something. >> it really is. welcome aboard. i'm sure you came after me, but good to have you here. thanks for joining us. see us again. then we have the unions pulling out all the stops, protesting to try to stop the coch brothers to make an offer on the l.a. times. here's the problem. they have not even put in a bid yet. they've not done that yet. haven't even put in a bid. what could happen if the coch's bought the l.a. times? what about this? >> tornadoes are forming so fast, oh, oh, my god, lisa, are you getting that? the tornado came and racedment the hollywood side is gone. >> anyone hurt? >> i wouldn't be surprised. all stations come over to mission a for a final go.

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[screaming] >> oh, maybe that's a little far, but is that what would happen if the coch brothers took over "the l.a. times," a hollywood armageddon? the unions think so out protesting the potential sale yesterday. now, here's what coch industries told us, quote, we respect the inpendce othjournaistic cotituons rerenc in h ws srie buti' ou lng stanng picy nott ommen in das r uors we may or may not be exploring. they have yet to submit a bid. i want to have fun. i want to speculate wildly. let's suppose that the coch brothers walk in there and buy the "l.a. times," the conservative from the midwest by the liberal bashton, is it arm armageddon? >> of course it is. what's interesting is hollywood

already targeted the coch in the 2012 election, "the campaign" with zach and will fairl. they were trying to usurp democracy and in the end, they failed so the coch have been on the radar of hollywood, but this is such a silly exercise. it may make the unions feel good about themselves, bang on drums, and shout slogans that are childish, by if you look at the work force of the coch brothers, 30% is unionized, a far larger percentage than unionization in america as a whole, and the coch are painted as conservative puppet masters. the competitive advantage -- the positions are liberals, for same-sex marriage, proamnesty,

flirted with the idea of raising taxes. it's not like he's some traditional down the line conservative. >> raises the question of just how liberal is los angeles? granted the "l.a. times" is a liberal newspaper. we get that, okay. what about the general population of los angeles, which, by the way, is very close to bankruptcy, has no money, cutting services, left, right, and center, and they are rejecting a whole different political philosophy? is it just -- this liberalism, is it just skin deep in l.a., or is it deeper? tell me. >> no, i think liberalism is nothing more than a temper tantrum with a political label attached to it, and you see that with the protesters issue and just the suggestion at the possibility that the theory at this point that the coch may give an offer to buy the "l.a. times" from the tribune company, but what's scary with the situation is that you have members of the l.a. city council who are threatening to divest

the pension funds from oak tree capital management, the largest shareholder of the tribune company, if the sale to the coch goes through. i mean, that's the type of abusive power that we're seeing and talking about now with the irs and department of justice to go ahead and tell a management company they may lose $200 million of pension funding if they decide to even consider a bid from the coch brothers. >> interesting imposition on free speech in the free movement of capital to get the best possible return. that's a very -- that's extreme position to take. i'm not surprised by it, but it is an extreme position. we'll work this out. jason, thank you very much indeed for joining us. we had fun with this. what's wrong with speculation, okay? nothing, nothing. >> nothing, of course. thank you. >> come back for more. >> we'll speculate. >> the exploding industry called 3-d printing. we, you know, we brought you the by --

bionic ear printed in 3-d, the man printed liver tissue, and now a heart. no, it is not a real heart, but it's a real breakthrough in the diagnosis and treatment of heart disease. don't miss this 3-d rev -- revolution that's here, folks. ♪

♪ >> stock of the day, google, soared past 900 bucks a share this morning hitting a new all-time high. google stock now at 905. another name yo another high this morning is netflix, 244.83, that was the high backing off the 243.14. a new 52-week high for toyota with a better profit margin. look at the big board, dow jones average is basically flat holding at 152. power ball fever hit again. the jackpot? 360 million. the pot swelled after no one matched the winning numbers from the weekend's drawings. o.j. simpson expected to testify today, claiming he had bad lawyer when sent to jail in 2008.♪ doctors printing a 3-d heart

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at fidelity, we do it by merging two tools into one. combining your customized charts with leang-edge analysis tools from recognia so you can quickly spot key trends and possible entry and exit points. we like this idea so much that we've applied for a patent. i'm colin beck fidelity investments. our integrated technical analysis is one more innovative reason serious investors are c. now get 200 free trades when you open an account. >> another stock hitting a high is home depot. how high up, nicole? >> oh, yeah, take a look here, home depot, lowe's, home depot at 78 bucks a moment, new high, lows in the same category, the new highs, and johnson & johnson at new highs. with more time, we could list them all, but that would take the whole program. good stuff. charles is going to make money.

maybe this stock reaches a new high at some stage called chars industry? >> it hit a new high, one i pounded the table op in the show, initially pulled back, and now it's up big. i want to share with the viewers that i sent the alert out to the clients. >> when did you send the alert, recommend it? >> i forgot, but it was between 78 and 80 dollars. pretty good, a double digit gain. >> what's it do? >> everything from liquid natural gas to tankers, and everything else. the stock got ahead of itself. the chart, i love the long term story, but there's a chance at some point to buy back. >> get out now? >> i wanted to share it with the viewers because guys watches the show bought the stock because it pulled back, hey, what's going on, so i did that curt sigh. >> take your money off the table, get in back in the future? >> absolutely. >> love the stock? >> love the story, but stories get ahead of the stock. >> look at this, please, talking about 3-d printing of organs. now, that's something we talked

a lot about op the program, and now a children's hospital near washington, d.c. is using this 3-d technology to print replicas of their patient's heart. they are going to understand it better, diagnosis diagnose, and treat the patients using a 3-d replica. dr. axel with us, the biomedical robotic expert at the children's center. welcome to the program. >> good morning, thanks for having me. >> to be clear to everybody, it's not a real heart, not a functioning heart, but a 3-d # printed heart that allows you to do a reelica of a patient with a heart problem; is that right? >> that's correct. using 3-d printing to create an exact replica of a patient's heart to help card yolingses and surgeons prepare for complex procedures and surgeries. >> is this an easy thinged to

do, printing out a 3-d heart, just like that? >> it's not quite printing like a paper printer, but more complex. the way it works is you start by acquiring an image of the patient, and then we process the digital images to create a 3-d model, digital 3-d mod model and print layer by layer. >> absolutely precise, has to be perfect? >> yes, this is very precise. i brought one of the models with me today, so the, really, the accuracy is a millimeter. the way it's built is layer by layer, each layer about the size of a human hair. very precise, takes about ten hours to build a large model such as these, and now our surgeons love it because it gives them a feel for the heart, for sizing. they can try out access routes

to fix the problem, the specific problem in the heart, and so to pick the right tools for the repair, which -- >> doctor, this is part of the 3-d revolution, isn't it? how long have you been able to do this kind of very precise 3-d printing to the level we have now? >> this is really over the last couple years, the technology evolved to that point. i've been using 3-d printing about ten years, but in the early stages, really, the precision was not there, and you could only select very few materials, and now we have the variety of materials, ranging from very soft to hard, now even metals that you can print. it's really evolving, and more materials that can actually be implanted, i think, this is the new trend. >> gee whiz to us, doctor. thank you for revealing this to us because i didn't know-around all these years, but a

revolution, and we want to know about it. doctor axel from originally where, sir? >> originally from germany, and now children's national medical center. >> green card or citizen, what are you? >> green card, green card. >> come on, join the club. >> american wife. >> there you go. join the club. it's the place to be. >> absolutely. >> thanks for joining us. >> thank you very much. >> tesla, we were calling that the new apple, but watch out, if you live in one particular state, there's a plan to ban the tesla. you can't buy one in this particular state. which state and why, next.

♪

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>> with the dow dead flat, oil, down sharply, a buck-66 lower, 92 # for a barrel of oil, and gold, look at that, 1396. that's important. below 1400 again after 28 bucks today. that's a lot. charles, lightning round, first of all, tax exempt status was given to the brack h. obama foundation. a shady charity run by the

president's half brother. what do you think of that? >> the cherry on top of an entirely dispickble piece. it's deeper than an individual in cincinnati going to the idea that these people should be punished for the president of the united states. >> they apply tax exempt status, and they are denied? >> not even month and years because if you look at the applications, they are, like, get to us in the next three days with this, this, this, and that, or forget about it. >> the president's half brother running a foundation from virginia who has 12 wives back in kenya, he gets a tax exempt status in one month, and that status is retroactive for three years. >> absolutely amazing. >> next item. a bill in north carolina would ban the sale of tesla cars in the state. car dealers and government officials are not happy they sell directly to the consumers and not through car dealerships,

what do you think of this? >> a thousand percent bogus. it i sell a suit in north carolina, not through the internet, based on amazon, i don't get it. this is a group of people, the auto dealers, i understand, disruptive technology, but it's the way things are going. new york, there's been lawsuits, massachusetts, illinois, oregon, and even texas, even in texas they've tried to stop this. it's stupid, ridiculous. by the way, these car dealers that sell gasoline powered cars, theyywill knock themselves out selling an electric vehicle. be hoppest, it's unfortunate for them, that's the way business goes. figure out how to deal with it. >> restrictive practices, not in my book. more varney after this. we went out and asked people a simple question: how old is the oldest person you've known? we gave people a sticker and had th show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed much

is the official retireme age. ♪ the question is how do you make sure you have the money yoneed to enjoy all of these years. ♪ ...amelia... neil and buzz: for teaching us that youan't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond.

80 thousanofs investing billions... in everything from the best experiences below... to the finest mforts above. we're not simply saluting history... we're making it. the wright brothers became the first in flight. [ goodall ] i think the mo amazing thing is how like us these chimpanzees are. [ laughing ] [ woman ] can you hear me? and you hear your voice? oh, it's exciting! [ n ] touchdown confirmed. wee safe on mars. [ cheers and applause ] ♪ hi. [ baby fussing ] ♪ stuart: here it is. the highlight reel. roll it, please. get thh irs out of obamacare.

>> they will have unprecedented amount of information. stuart: you may not hire 1954 new irs agent to police obamacare. >> we will have some confidence that that information will be held confidential. >> no matter how many times you will but will not be, it will be implemented. stuart: hold on a second. these scandals, especially the irs scandal, that is spreading. it will affect the second term agenda. charles: i think even julie sort of agreed with that.

if given some time, we can get in front of this quickly. stuart: she said he is a lame duck. charles: they gave them a hard time. using the power of the irs to do that -- we are afraid of the irs to begin with. stuart: if you look at the stock market, this scandal creates gridlock in washington. i think you agree with me on this.

charles: when you are trying to do with something like this, by the way, everyone is outraged by this. stuart: thank you, charles. dagen and connell, it is yours. dagen: oh, my word. i am dagen mcdowell. connell: i am connell mcshane. dagen: the phone records scandal that is putting the department of justice on its ear. connell: the attention of the people bank of china. dagen: money is also cheap. corporate america taking advantage. those stories and so much more coming up on markets now. ♪